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Testimony: 

Before the Subcommittee on Federal Workforce, Postal Service, and the 
District of Columbia, Committee on Oversight and Government Reform, 
House of Representatives: 

United States Government Accountability Office: 

GAO: 

For Release on Delivery Expected at 2:00 p.m. EST: 

Thursday, May 10, 2007: 

Human Capital: 

Diversity in the Federal SES and the Senior Levels of the U.S. Postal 
Service: 

Statement of George H. Stalcup, Director: 
Strategic Issues: 

GAO-07-838T: 

GAO Highlights: 

Highlights of GAO-07-838T, a testimony before the Subcommittee on 
Federal Workforce, Postal Service, and the District of Columbia, 
Committee on Oversight and Government Reform, House of Representatives 

Why GAO Did This Study: 

The Senior Executive Service (SES) generally represents the most 
experienced and senior segment of the federal workforce. Having a 
diverse SES corps can be an organizational strength that contributes to 
the achievement of results by bringing a wider variety of perspectives 
and approaches to bear on policy development and implementation, 
strategic planning, problem solving, and decision making. 

In a January 2003 report (GAO-03-34), GAO provided data on career SES 
members by race, ethnicity, and gender as of October 2000. In March 
2000, we reported similar data for the Postal Career Executive Service 
as of September 1999 (GAO/GGD-00-76). In response to a request for 
updated information on diversity in the top levels of government, GAO 
is providing information obtained from the Office of Personnel 
Management’s Civilian Personnel Data File and the Postal Service on the 
representation of women and minorities in (1) the federal government’s 
career SES, (2) the developmental pools from which the vast majority of 
potential successors for career senior level positions will come (i.e., 
GS-14 and GS-15), (3) the Postal Service’s career officer and senior 
executive positions in the Postal Career Executive Service, and (4) the 
developmental pool of potential successors for senior level Postal 
Service positions as of the end of fiscal year 2006. 

What GAO Found: 

Data in the Civilian Personnel Data File and provided by the U.S. 
Postal Service show that as of the end of fiscal year 2006, the overall 
percentages of women and minorities have increased since 2000 in both 
the federal career SES and the developmental pool for potential 
successors and the Postal Career Executive Service (PCES) and the 
developmental pool of potential successors (EAS levels 22 and above) 
since 1999. 

Table: 

Governmentwide: SES; 
October 2000: Number: 6,110; 
October 2000: Percent: Women: 23.6; 
October 2000: Percent: Men: 13.8; 
September 2006: Number: 6,349; 
September 2006: Percent: Women: 28.4; 
September 2006: Percent: Men: 15.9. 

Governmentwide: SES potential developmental pool (GS-14s and GS-15s); 
October 2000: Number: 135,012; 
October 2000: Percent: Women: 28.2; 
October 2000: Percent: Men: 17.0; 
September 2006: Number: 160,573; 
September 2006: Percent: Women: 32.8; 
September 2006: Percent: Men: 21.0. 

Source: GAO analysis of the Office of Personnel Management's Central 
Personnel Data File. 

[end of table] 

Table: 

U.S. Postal Service: PCES; 
September 1999: Number: 854; 
September 1999: Percent: Women: 20.1; 
September 1999: Percent: Minorities: 20.8; 
September 2006: Number: 768; 
September 2006: Percent: Women: 28.6; 
September 2006: Percent: Minorities: 25.5. 

U.S. Postal Service: PCES potential developmental pool; 
September 1999: Number: 8,955; 
September 1999: Percent: Women: 22.7; 
September 1999: Percent: Minorities: 25.3; 
September 2006: Number: 8,606; 
September 2006: Percent: Women: 30.9; 
September 2006: Percent: Minorities: 29.1. 

Source: GAO analysis of Postal Service data. 

[End of figure] 

As we have testified, the federal government is facing new and more 
complex challenges in the 21st century because of long-term fiscal 
constraints, changing demographics, and other factors. SES members are 
critical to providing the strategic leadership needed to effectively 
meet these challenges. Racial, ethnic, and gender diversity in the 
federal government’s senior ranks can be a key organizational component 
for executing agency missions, ensuring accountability to the American 
people in the administration and operation of federal programs, and 
achieving results. 

SES retirement eligibility is much higher than the workforce in 
general, and a significant number of SES retirements could result in a 
loss of leadership continuity, institutional knowledge, and expertise 
among the SES corps. In fact, OPM estimates that 90 percent of federal 
executives will be eligible for retirement over the next 10 years, and 
the Postal Service expects nearly half of its executives to retire 
within 5 years. This underscores the need for effective succession 
planning. Succession planning also is tied to the federal government’s 
opportunity to affect SES diversity through new appointments. Gaining 
insight into diversity in the federal government’s senior leadership 
and developmental pools and factors affecting them is important to 
developing and maintaining a high-quality and inclusive workforce. 

[Hyperlink, http://www.gao.gov/cgi-bin/getrpt?GAO-07-838T]. 

To view the full product, including the scope and methodology, click on 
the link above. For more information, contact George Stalcup on (202) 
512-9490 or at stalcupg@gao.gov. 

[End of section] 

Chairman Davis, Representative Marchant, and Members of the 
Subcommittee: 

I am pleased to be here today to provide the Subcommittee with 
information on the representation of women and minorities[Footnote 1] 
in the federal government's career Senior Executive Service 
(SES)[Footnote 2] and roughly comparable career officer and senior 
executive positions in the U.S. Postal Service's Postal Career 
Executive Service (PCES).[Footnote 3] I am also providing information 
on the representation of women and minorities at the levels that serve 
as the developmental pools from which the vast majority of potential 
successors for career SES positions[Footnote 4] and potential 
successors for PCES positions will come.[Footnote 5] 

The federal government is facing new and more complex challenges in the 
21ST century as a result of long-term fiscal constraints, changing 
demographics, evolving governance models, and other factors. Leadership 
in agencies across the federal government, especially at senior 
executive levels, is essential to providing the accountable, committed, 
consistent, and sustained attention needed to human capital and related 
organizational transformation issues. As we have previously reported, a 
high-performance organization relies on a dynamic workforce with the 
requisite talents, multidisciplinary knowledge, and up-to-date skills 
to ensure that it is equipped to accomplish its mission and achieve its 
goals.[Footnote 6] The approach that a high-performance organization 
takes toward its workforce is inclusive and draws on the strengths of 
employees at all levels and of all backgrounds. 

SES members generally represent the most experienced segment of an 
agency's workforce and can help to effectively execute agency missions 
and ensure accountability to the American people in the administration 
and operation of federal programs. Having a diverse SES corps can be an 
organizational strength that contributes to achieving results. 
Diversity can bring a wider variety of perspectives and approaches to 
bear on policy development and implementation, strategic planning, 
problem solving, and decision making. 

The results of our most recent work on SES diversity were issued in 
2003,[Footnote 7] and we issued reports on diversity in the Postal 
Service in 2003 and in the PCES in 2000.[Footnote 8] Today we are 
providing data we extracted from the Office of Personnel Management's 
(OPM) Central Personnel Data File (CPDF) as of the end of fiscal year 
2006 on the representation of women and minorities in career 
SES[Footnote 9] and GS-14 and GS-15 positions as well as baseline data 
from October 2000, which we previously reported for those same 
positions.[Footnote 10] We also received data from the Postal Service 
on the representation of women and minorities in career officer and 
senior executive positions in the PCES as well as the levels that the 
Postal Service considers the developmental pool for PCES positions as 
of the end of fiscal year 2006 to update fiscal year 1999 data we 
previously reported.[Footnote 11] We believe the CPDF is sufficiently 
reliable for the informational purpose of this testimony. We previously 
reported that governmentwide data from the CPDF for the key variables 
reported in this testimony--agency, gender, race or national origin, 
and pay plan or grade--were 96 percent or more accurate.[Footnote 12] 
In addition, as the Postal Service reported making no changes to its 
database since we performed testing of electronic data for obvious 
errors of completeness and accuracy for our 2003 report and as the 
Postal Service provided updated information of the same nature, we 
consider the data to be sufficiently reliable for the informational 
purpose of this testimony. 

The data that we are reporting today provide a demographic snapshot of 
the career SES as well as the levels that serve as the developmental 
pools for those positions in October 2000 and September 2006, and the 
career PCES as well as the levels that serve as the developmental pool 
for those positions in September 1999 and September 2006. Table 1 shows 
the number of career SES as well as those in the developmental pool 
governmentwide, including the percentages of women and minorities, for 
October 2000 and September 2006. 

Table 1: Career SES and the SES Developmental Pool for October 2000 and 
September 2006: 

Governmentwide: SES; 
October 2000: Number: 6,110; 
October 2000: Percent: Women: 23.6; 
October 2000: Percent: Men: 13.8; 
September 2006: Number: 6,349; 
September 2006: Percent: Women: 28.4; 
September 2006: Percent: Men: 15.9. 

Governmentwide: SES potential developmental pool (GS-14s and GS-15s); 
October 2000: Number: 135,012; 
October 2000: Percent: Women: 28.2; 
October 2000: Percent: Men: 17.0; 
September 2006: Number: 160,573; 
September 2006: Percent: Women: 32.8; 
September 2006: Percent: Men: 21.0. 

Source: GAO analysis of OPM's CPDF. 

[End of table] 

Table 2 shows a further breakdown of the number of SES members, 
including the percentages of women and minorities, by Chief Financial 
Officers (CFO) Act agency for October 2000 and September 2006.[Footnote 
13] 

Table 2: Career SES Members by CFO Act Agency for October 2000 and 
September 2006: 

CFO Act agency: Agriculture; 
October 2000: Number of SES: 283; 
October 2000: Percent: Women: 25.4; 
October 2000: Percent: Minorities: 20.1; 
September 2006: Number of SES: 314; 
September 2006: Percent: Women: 31.2; 
September 2006: Percent: Minorities: 18.5. 

CFO Act agency: AID; 
October 2000: Number of SES: 25; 
October 2000: Percent: Women: 20.0; 
October 2000: Percent: Minorities: 20.0; 
September 2006: Number of SES: 17; 
September 2006: Percent: Women: 47.1; 
September 2006: Percent: Minorities: 29.4. 

CFO Act agency: Commerce; 
October 2000: Number of SES: 296; 
October 2000: Percent: Women: 23.3; 
October 2000: Percent: Minorities: 12.5; 
September 2006: Number of SES: 313; 
September 2006: Percent: Women: 27.8; 
September 2006: Percent: Minorities: 12.8. 

CFO Act agency: Defense; 
October 2000: Number of SES: 1,144; 
October 2000: Percent: Women: 16.3; 
October 2000: Percent: Minorities: 6.1; 
September 2006: Number of SES: 1,104; 
September 2006: Percent: Women: 21.0; 
September 2006: Percent: Minorities: 8.0. 

CFO Act agency: Education; 
October 2000: Number of SES: 60; 
October 2000: Percent: Women: 28.3; 
October 2000: Percent: Minorities: 21.7; 
September 2006: Number of SES: 73; 
September 2006: Percent: Women: 39.7; 
September 2006: Percent: Minorities: 24.7. 

CFO Act agency: Energy; 
October 2000: Number of SES: 391; 
October 2000: Percent: Women: 18.9; 
October 2000: Percent: Minorities: 10.7; 
September 2006: Number of SES: 411; 
September 2006: Percent: Women: 22.1; 
September 2006: Percent: Minorities: 14.6. 

CFO Act agency: EPA; 
October 2000: Number of SES: 255; 
October 2000: Percent: Women: 29.8; 
October 2000: Percent: Minorities: 15.3; 
September 2006: Number of SES: 260; 
September 2006: Percent: Women: 37.7; 
September 2006: Percent: Minorities: 15.8. 

CFO Act agency: FEMA; 
October 2000: Number of SES: 32; 
October 2000: Percent: Women: 21.9; 
October 2000: Percent: Minorities: 3.1; 
September 2006: Number of SES: [A]; 
September 2006: Percent: Women: [A]; 
September 2006: Percent: Minorities: [A]. 

CFO Act agency: GSA; 
October 2000: Number of SES: 84; 
October 2000: Percent: Women: 28.6; 
October 2000: Percent: Minorities: 14.3; 
September 2006: Number of SES: 71; 
September 2006: Percent: Women: 26.8; 
September 2006: Percent: Minorities: 11.3. 

CFO Act agency: HHS; 
October 2000: Number of SES: 399; 
October 2000: Percent: Women: 36.1; 
October 2000: Percent: Minorities: 21.3; 
September 2006: Number of SES: 342; 
September 2006: Percent: Women: 43.0; 
September 2006: Percent: Minorities: 22.2. 

CFO Act agency: DHS; 
October 2000: Number of SES: [B]; 
October 2000: Percent: Women: [B]; 
October 2000: Percent: Minorities: [B]; 
September 2006: Number of SES: 262; 
September 2006: Percent: Women: 26.0; 
September 2006: Percent: Minorities: 12.6. 

CFO Act agency: HUD; 
October 2000: Number of SES: 73; 
October 2000: Percent: Women: 28.8; 
October 2000: Percent: Minorities: 35.6; 
September 2006: Number of SES: 82; 
September 2006: Percent: Women: 37.8; 
September 2006: Percent: Minorities: 40.2. 

CFO Act agency: Interior; 
October 2000: Number of SES: 191; 
October 2000: Percent: Women: 31.9; 
October 2000: Percent: Minorities: 22.0; 
September 2006: Number of SES: 227; 
September 2006: Percent: Women: 32.6; 
September 2006: Percent: Minorities: 25.6. 

CFO Act agency: Justice; 
October 2000: Number of SES: 407; 
October 2000: Percent: Women: 22.6; 
October 2000: Percent: Minorities: 15.2; 
September 2006: Number of SES: 605; 
September 2006: Percent: Women: 21.8; 
September 2006: Percent: Minorities: 17.9. 

CFO Act agency: Labor; 
October 2000: Number of SES: 132; 
October 2000: Percent: Women: 28.0; 
October 2000: Percent: Minorities: 21.2; 
September 2006: Number of SES: 121; 
September 2006: Percent: Women: 33.1; 
September 2006: Percent: Minorities: 20.7. 

CFO Act agency: NASA; 
October 2000: Number of SES: 394; 
October 2000: Percent: Women: 19.5; 
October 2000: Percent: Minorities: 13.2; 
September 2006: Number of SES: 415; 
September 2006: Percent: Women: 23.1; 
September 2006: Percent: Minorities: 15.9. 

CFO Act agency: NRC; 
October 2000: Number of SES: 139; 
October 2000: Percent: Women: 13.7; 
October 2000: Percent: Minorities: 11.5; 
September 2006: Number of SES: 152; 
September 2006: Percent: Women: 20.4; 
September 2006: Percent: Minorities: 15.1. 

CFO Act agency: NSF; 
October 2000: Number of SES: 79; 
October 2000: Percent: Women: 30.4; 
October 2000: Percent: Minorities: 13.9; 
September 2006: Number of SES: 78; 
September 2006: Percent: Women: 42.3; 
September 2006: Percent: Minorities: 15.4. 

CFO Act agency: OPM; 
October 2000: Number of SES: 36; 
October 2000: Percent: Women: 41.7; 
October 2000: Percent: Minorities: 19.4; 
September 2006: Number of SES: 40; 
September 2006: Percent: Women: 30.0; 
September 2006: Percent: Minorities: 17.5. 

CFO Act agency: SBA; 
October 2000: Number of SES: 39; 
October 2000: Percent: Women: 33.3; 
October 2000: Percent: Minorities: 33.3; 
September 2006: Number of SES: 35; 
September 2006: Percent: Women: 31.4; 
September 2006: Percent: Minorities: 37.1. 

CFO Act agency: SSA; 
October 2000: Number of SES: 118; 
October 2000: Percent: Women: 35.6; 
October 2000: Percent: Minorities: 33.1; 
September 2006: Number of SES: 144; 
September 2006: Percent: Women: 39.6; 
September 2006: Percent: Minorities: 29.9. 

CFO Act agency: State; 
October 2000: Number of SES: 101; 
October 2000: Percent: Women: 28.7; 
October 2000: Percent: Minorities: 5.0; 
September 2006: Number of SES: 114; 
September 2006: Percent: Women: 31.6; 
September 2006: Percent: Minorities: 6.1. 

CFO Act agency: Transportation; 
October 2000: Number of SES: 178; 
October 2000: Percent: Women: 27.0; 
October 2000: Percent: Minorities: 14.6; 
September 2006: Number of SES: 182; 
September 2006: Percent: Women: 34.6; 
September 2006: Percent: Minorities: 15.9. 

CFO Act agency: Treasury; 
October 2000: Number of SES: 537; 
October 2000: Percent: Women: 23.3; 
October 2000: Percent: Minorities: 12.8; 
September 2006: Number of SES: 381; 
September 2006: Percent: Women: 34.9; 
September 2006: Percent: Minorities: 18.6. 

CFO Act agency: VA; 
October 2000: Number of SES: 247; 
October 2000: Percent: Women: 14.6; 
October 2000: Percent: Minorities: 9.7; 
September 2006: Number of SES: 229; 
September 2006: Percent: Women: 24.0; 
September 2006: Percent: Minorities: 14.4. 

Source: GAO analysis of OPM's CPDF. 

[A] The Federal Emergency Management Agency (FEMA) was an independent 
agency and 1 of the 24 CFO Act agencies until the formation of the 
Department of Homeland Security (DHS) in 2003. 

[B] DHS did not exist before March 1, 2003. It was created from 22 
agencies or parts of agencies, including the U.S. Customs Service, 
which was formerly located in the Department of the Treasury; FEMA; and 
the Coast Guard. 

Note: AID is the Agency for International Development; EPA is the 
Environmental Protection Agency; GSA is the General Services 
Administration; HHS is the Department of Health and Human Services; HUD 
is the Department of Housing and Urban Development; NASA is the 
National Aeronautics and Space Administration; NRC is the Nuclear 
Regulatory Commission; NSF is the National Science Foundation; SBA is 
the Small Business Administration; SSA is the Social Security 
Administration; and VA is the Department of Veterans Affairs. 

[End of table] 

As we reported in 2003, the gender, racial, and ethnic profiles of the 
career SES at the 24 CFO Act agencies varied significantly in October 
2000. The representation of women ranged from 13.7 percent to 41.7 
percent, with half of the agencies having 27 percent or fewer women. 
For minority representation, rates varied even more and ranged from 3.1 
percent to 35.6 percent, with half of the agencies having less than 15 
percent minorities in the SES. In 2006, the representation of women and 
minorities, both overall and for most individual agencies, was higher. 
The representation of women ranged from 20.4 percent to 47.1, percent 
with more than half of the agencies having 30 percent or more women. 
For minority representation, rates ranged from 6.1 percent to 40.2 
percent, with 50 percent of the agencies having over 17 percent 
minority representation, and almost 90 percent of the agencies having 
more than 12 percent minority representation in the SES.[Footnote 14] 

Considering retirement eligibility and actual retirement rates of the 
SES is important because individuals normally do not enter the SES 
until well into their careers; thus SES retirement eligibility is much 
higher than the workforce in general. As part of a strategic human 
capital planning approach, agencies need to develop long-term 
strategies for acquiring, developing, motivating, and retaining staff. 
An agency's human capital plan should address the demographic trends 
that the agency faces with its workforce, especially retirements. In 
2006, OPM reported that approximately 60 percent of the executive 
branch's 1.6 million white-collar employees and 90 percent of about 
6,000 federal executives will be eligible for retirement over the next 
10 years. If a significant number of SES members were to retire, it 
could result in a loss of leadership continuity, institutional 
knowledge, and expertise among the SES corps, with the degree of loss 
varying among agencies and occupations. This has important implications 
for government management and emphasizes the need for good succession 
planning for this leadership group. Rather than simply recreating the 
existing organization, effective succession planning and management, 
linked to the strategic human capital plan, can help an organization 
become what it needs to be. Leading organizations go beyond a 
"replacement" approach that focuses on identifying particular 
individuals as possible successors for specific top-ranking positions. 
Rather, they typically engage in broad, integrated succession planning 
and management efforts that focus on strengthening both current and 
future capacity, anticipating the need for leaders and other key 
employees with the necessary competencies to successfully meet the 
complex challenges of the 21st century. 

Succession planning also is tied to the federal government's 
opportunity to affect the diversity of the executive corps through new 
appointments. In September 2003,[Footnote 15] we reported that agencies 
in other countries use succession planning and management to achieve a 
more diverse workforce, maintain their leadership capacity, and 
increase the retention of high-potential staff. Racial, ethnic, and 
gender diversity in the SES is an important component for the effective 
operation of the government. 

As we recently testified before this Subcommittee,[Footnote 16] the 
Postal Service expects nearly half of its executives to retire within 
the next 5 years, which has important implications and underscores the 
need for effective succession planning. This presents the Postal 
Service with substantial challenges for ensuring an able management 
cadre and also presents opportunities for the Postal Service to affect 
the composition of the PCES. Table 3 shows the number of career PCES 
members and the EAS developmental pool for those positions, including 
the percentages of women and minorities, for September 1999 and 
September 2006. 

Table 3: Career PCES and the EAS Developmental Pool for September 1999 
and September 2006: 

U.S. Postal Service: PCES; 
September 1999: Number: 854; 
September 1999: Percent: Women: 20.1; 
September 1999: Percent: Minorities: 20.8; 
September 2006: Number: 768; 
September 2006: Percent: Women: 28.6; 
September 2006: Percent: Minorities: 25.5. 

U.S. Postal Service: PCES potential developmental pool; 
September 1999: Number: 8,955; 
September 1999: Percent: Women: 22.7; 
September 1999: Percent: Minorities: 25.3; 
September 2006: Number: 8,606; 
September 2006: Percent: Women: 30.9; 
September 2006: Percent: Minorities: 29.1. 

Source: GAO analysis of Postal Service data. 

[End of table] 

In 2005, we reported that the Postal Service had a formal succession 
planning process and considers the development of potential successor 
employees for executive leadership roles as one stage in that 
process.[Footnote 17] In fiscal year 2002, the Postal Service completed 
a Web-based individual development plan system, which is found on the 
Diversity Development Intranet site. Individuals in management 
positions are to use the Web-based individual development plan system 
to identify their skills, training, areas of expertise, and areas of 
development focus. The Postal Service states that it tracks this 
information to ensure that all potential candidates for higher level or 
more specialized jobs are following a plan that includes the training 
and work experiences necessary to enable these individuals to fill 
vacant positions and lead the organization into the future. 

While we have not analyzed recent changes in the representation levels 
within the federal or Postal Service workforces for this testimony, 
agencies, including the Postal Service, have an important 
responsibility to analyze the representation levels of their workforce 
and report the results of their analyses under requirements from OPM 
and the Equal Employment Opportunity Commission (EEOC). Both of these 
agencies in their oversight roles also report on governmentwide 
representation levels.[Footnote 18] Under OPM's regulations 
implementing the Federal Equal Opportunity Recruitment Program 
(FEORP),[Footnote 19] agencies are required to determine where 
representation levels for covered groups are lower than the civilian 
labor force and take steps to address those differences. Agencies are 
also required to submit annual FEORP reports to OPM in the form 
prescribed by OPM. These reports have included (1) data on employee 
participation in agencywide and governmentwide career development 
programs broken out by race, national origin, gender, and grade level 
and (2) narrative identifying areas where the agencies had been most 
successful in recruiting, hiring, and conducting formal training of 
women and minorities. EEOC's Management Directive 715 (MD-715) provides 
guidance and standards to federal agencies for establishing and 
maintaining effective equal employment opportunity programs,[Footnote 
20] including a framework for executive branch agencies and the Postal 
Service to determine whether barriers to equal employment opportunity 
exist and to identify and develop strategies to mitigate or eliminate 
the barriers to participation.[Footnote 21] The initial step is for 
agencies to analyze their workforce data with designated benchmarks, 
including the civilian labor force. After analyzing their workforce 
profiles, if potential barriers may exist, agencies are to examine all 
related policies, procedures, and practices to uncover whether an 
actual barrier exists. EEOC instructs that only after agencies uncover 
and understand the actual barrier can appropriate objectives be 
implemented to eliminate it. EEOC requires agencies to report the 
results of their analyses annually. 

A specific provision was also included in recent postal reform 
legislation related to tracking diversity in the Postal Service's 
executive and administrative schedule management positions.[Footnote 
22] The Postal Accountability and Enhancement Act requires that by 
December 20, 2007, the Postal Service's Board of Governors study and 
submit a report to the President and Congress concerning the extent to 
which women and minorities are represented in supervisory and 
management positions. 

The statistics we provide in this statement portray a demographic 
profile of career federal senior executives for a particular point in 
time. Although such statistics can be informative and useful as a 
starting point, these numbers do not reveal important factors such as 
pending or expected separations from or appointments to the SES corps, 
the PCES, or the developmental pools that lead to them. Such 
information would provide more insight into the current and prospective 
state of the diversity in the federal government's executive corps. 
Understanding factors affecting representation is important to 
developing and maintaining a high-quality and inclusive workforce. 

Chairman Davis, Representative Marchant, and Members of the 
Subcommittee, this concludes my prepared statement. I would be pleased 
to respond to any questions that you may have. 

Contacts and Acknowledgments: 

For further information regarding this statement, please contact George 
Stalcup, Director, Strategic Issues on (202) 512-9490 or at 
stalcupg@gao.gov. Individuals making key contributions to this 
statement included Belva Martin, Assistant Director; Joshua Bartzen; 
Benjamin T. Licht; Kiki Theodoropoulos; and Greg Wilmoth. 

[End of section] 

Enclosure I: 

[See PDF for Demographics] 

FOOTNOTES 

[1] By minorities, we refer to people in the following racial and 
ethnic groups: African American, American Indian/Alaska Native, Asian/ 
Pacific Islander, and Hispanic. 

[2] Career SES members are individuals with civil service status 
(permanent) who are appointed competitively to SES positions and serve 
in positions below the top political appointees in the executive branch 
of government. 

[3] The PCES is made up of two levels, officers (PCES 02), who are 
appointed by and serve at the pleasure of the Postmaster General and 
include area vice presidents and the Deputy Postmaster General, and 
executives (PCES 01), who include district managers and bulk mail 
center managers. 

[4] The vast majority of potential successors for career SES positions 
come from the general schedule (GS) pay plan for grades GS-14 and GS- 
15. We included GS-15, GS-14, and equivalent employees. GS-equivalent 
employees are those in equivalent grades under other pay plans that 
follow the GS grade structure and job evaluation methodology or are 
equivalent by statute. 

[5] The potential successors for PCES positions are generally from 
levels 22 and above of the Postal Service's Executive Administrative 
Service (EAS). In fiscal year 2004, EAS employees at level 22 compared 
roughly to other federal employees who were paid under the fiscal year 
2004 general schedule at grade 11, step 6 to grade 14, step 3. 

[6] GAO, Diversity Management: Expert-Identified Leading Practices and 
Agency Examples, GAO-05-90 (Washington, D.C.: Jan. 14, 2005). 

[7] GAO, Senior Executive Service: Enhanced Agency Efforts Needed to 
Improve Diversity as the Senior Corps Turns Over, GAO-03-34 
(Washington, D.C.: Jan. 17, 2003). 

[8] GAO, U.S. Postal Service: Data on Career Employee Diversity, GAO-03-
745R (Washington, D.C.: Sept. 15, 2003); U.S. Postal Service: Diversity 
in the Postal Career Executive Service, GAO/GGD-00-76 (Washington, 
D.C.: Mar. 30, 2000). 

[9] For the SES, we included those with career appointments in the SES 
personnel system. These individuals are in executive positions 
classified above GS-15 or equivalent and do not require appointment by 
the President with Senate confirmation. We excluded those in SES-type 
positions authorized by law such as in the Foreign Service, and some 
law enforcement and intelligence programs as well as positions in the 
Senior Level and Scientific and Professional systems. 

[10] GAO-03-34. 

[11] GAO/GGD-00-76. Although we most recently reported on fiscal year 
2002 career employee diversity at the Postal Service (GAO-03-745R), we 
are citing fiscal year 1999 Postal Service data to be more comparable 
with the governmentwide data we are reporting. 

[12] GAO, OPM's Central Personnel Data File: Data Appear Sufficiently 
Reliable to Meet Most Customer Needs, GAO/GGD-98-199 (Washington, D.C.: 
Sept. 30, 1998). 

[13] The CFO Act agencies are 24 major executive agencies that are 
subject to the CFO Act. In 2006, the CFO Act agencies employed 98 
percent of federal employees. 

[14] While comparing the 2000 and the 2006 data identifies changes over 
time, comparing changes that have occurred since 2000 to the estimates 
we made in the 2003 report could be misleading without identifying or 
analyzing the factors contributing to those changes as we did in the 
2003 report. In that report, we reviewed appointment trends from fiscal 
years 1995 to 2000; estimated by race, ethnicity, and gender the number 
of career SES who would leave government service from October 1, 2000, 
through October 1, 2007; and what the profile of the SES would be if 
appointment trends did not change. We made the same estimates for the 
developmental pool of GS-15s and GS-14s, from which the ranks of the 
majority of replacements for departing SES members come, to ascertain 
the likely composition of that pool. We have not updated that 
information to determine whether estimated retirement trends 
materialized and the impact that may have had on the diversity of the 
SES. 

[15] GAO, Human Capital: Insights for U.S. Agencies from Other 
Countries' Succession Planning and Management Initiatives, GAO-03-914 
(Washington, D.C.: Sept. 15, 2003). 

[16] GAO, U.S. Postal Service: Postal Reform Law Provides Opportunities 
to Address Postal Challenges, GAO-07-684T (Washington, D.C.: Apr. 17, 
2007). 

[17] GAO-05-90. 

[18] OPM's most recent report is its January 2007 Annual Report to the 
Congress: Federal Equal Opportunity Recruitment Program, Fiscal Year 
2006, and EEOC's most recent report is its Fiscal Year 2005 Annual 
Report on the Federal Work Force. 

[19] 5 U.S.C. §7201 and 5 C.F.R. Part 720, Subpart B. 

[20] See section 717 of Title VII of the Civil Rights Act of 1964 and 
section 501 of the Rehabilitation Act of 1973, codified at 42 U.S.C. § 
2000e-16 and 29 U.S.C. § 501, respectively. 

[21] EEOC defines barriers as agency policies, principles, or practices 
that limit or tend to limit employment opportunities for members of a 
particular gender, race, or ethnic background or based on an 
individual's disability status. 

[22] Section 706 of Pub. L. No. 109-435, Postal Accountability and 
Enhancement Act (Dec. 20, 2006).

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